Benchmark DAC1 Pre

All things being equal, the fewer connections the better; therefore Option 1 should be better.

However, all things may not be equal. You use Option 1 if you run your speakers full range. You typically use Option numnber 2 if you want the sub to filter the output so that the main speakers do not have to reproduce the bass.

Try both and see which you like.

I would strongly recommend (if possible for your subwoofer) that you run the subwoofer off the amp and not the preamp. I think it integrates better than having two different loads (speaker amp and subamp) pulling from your preamp.

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Hi Warnsey,
I'm in the same boat with the DAC1 Pre. (Also in Oz)I waited over 5 weeks for mine, which came on Friday. Apparently the distributor doesn't like to keep stock. The manufacturing date on the base of the unit is Sept. 15th - 11 days after I paid for it!
Because my XLR to RCA cables are the generic pro variety, I decided to run the RCA to the power amp with higher quality cables, and the XLR to the sub.
It sounds great. Not having anything in the same league to compare it to, I can only say that it leaves the Squeezebox analog output for dead, as well as my much loved old Rotel 965BX LED CD player.
In my set-up it is replacing (at least temporarily) an ME-25 pre-amp and feeding a Rotel 990 power amp and Sonus Faber Concerto or Spendor 2/2 speakers.
First impressions (switch on audiospeak) are: more detail; liquid mids; much more distinct tonal colours; very easy to listen to for hours (and hours!); recordings seem more differentiated from each other; I can "hear" the space where the recording took place far more clearly than ever before - reminds me of vinyl.
Cheers.

Thanks for the responses guys. Just got the Benchmark today. It is a beautiful bit of kit (I didn't realise how cute and small it is). At the moment I am running option 2 as I don't have a spare XLR cable at the moment. However, I will further experiment soon.

I'm very interested in your impressions of the Benchmark on your particular horn/tube based system. I'm thinking you should have a really good thing going with this particular combo.